Iowa Resale Certificate (Form 31-014): How to Get, Use, and Accept One

TL;DR

• Iowa's resale certificate is Form 31-014; sellers can also accept the SST and MTC multistate certificates.

• Blanket certificates stay valid until canceled or until 12 months pass with no purchases (rule changed in 2024; no more 3-year limit).

• Out-of-state buyers can enter their home-state sales tax ID.

• Sellers keep the certificate and records for at least three years; nothing is filed with the state.

What an Iowa resale certificate is and how it differs from a sales tax permit

An Iowa resale certificate documents a buyer’s claim that goods are being purchased for resale. The buyer gives the certificate to the seller, who uses it to document why sales tax was not collected on the qualifying purchase.

An Iowa sales tax permit serves a different purpose. It authorizes a business to collect and remit tax on its taxable sales. Holding a permit does not, by itself, document a tax-free purchase for resale. Resale is also a separate exemption claim from nonprofit or manufacturing exemptions. The resale certificate guide covers the broader process.See Taxwire's Iowa sales tax guide for state tax rates.

Buyers: qualifying, completing Form 31-014, and use tax on converted inventory

Iowa buyers can claim a resale exemption for goods they purchase to sell to customers. For example, mugs bought for your store’s shelves qualify, but a mug bought to hold pens at the register does not. Base the claim on how you intend to use each purchase, not on whether your business generally sells similar goods.

Give your seller a completed Iowa Department of Revenue Sales/Use/Excise Tax Exemption Certificate, Form 31-014, when you claim the exemption. Identify the buyer and seller, select resale as the reason, describe the goods, enter your permit number, and sign the form. Give the certificate to the seller and keep a copy for your records. On the current Form 31-014, check either 'single purchase' (and enter the invoice or PO number) or 'blanket certificate.' Don't send the form to the Iowa Department of Revenue.

If you later take an exempt item out of inventory for business use or personal use, you owe Iowa use tax on that item because you did not resell it. A mug moved from the sales shelf to the register is one example. The form itself states that if property bought exempt is used in another manner, the purchaser is responsible for the tax (Iowa Code 423.45 and 423.51).

Out-of-state buyers: SST, MTC, and home-state permit numbers

Iowa accepts Form 31-014, the Streamlined Sales Tax (SST) Certificate of Exemption, and the MTC Uniform Sales & Use Tax Resale Certificate. Iowa rules list another state's sales tax ID as an acceptable purchaser number, and a buyer that makes no taxable retail sales in Iowa does not need an Iowa permit to give a resale certificate.

Sellers: what to check, good-faith acceptance, and incomplete certificates

If you sell to an out-of-state buyer, check that the completed form identifies the buyer and claims resale for the Iowa transaction. Ask for a corrected form if the registration details or exemption claim are missing.

Check the resale certificate before removing sales tax from an Iowa sale. Confirm that it names the buyer and seller, gives the requested business and registration details, identifies resale as the exemption reason, describes the goods, and includes the buyer’s signature and date. Compare the description with the items on the invoice. A resale claim for inventory does not cover supplies the buyer will use in its own business.

Accept a fully completed certificate in good faith when the information supports the claimed exemption. Keep the certificate with your sales records so you can connect it to the exempt transactions if Iowa questions the sale. Good-faith acceptance protects a seller who relies on a properly completed certificate, but it does not make an obviously inconsistent claim valid. This relief comes from Iowa Code 423.51 and does not apply to sellers who engage in the conduct listed in 423.51(2), such as fraud or knowingly accepting an incorrect claim.

If a certificate lacks required information or conflicts with the purchase, ask the buyer for a corrected certificate. Charge sales tax when the buyer cannot provide valid documentation for the exemption claim. If the buyer later supplies a correction, review the transaction before changing the tax treatment rather than assuming the correction automatically resolves it.Taxwire calculates sales tax at the invoice level using product category, delivery location, and jurisdiction-specific rules when a sale is taxable.

Expiry and record retention

Since August 2024, Iowa blanket certificates no longer expire after three years. Under 701 IAC 209.1(4), a blanket certificate stays in effect until the purchaser cancels it or until 12 months pass with no purchases between the same buyer and seller. A single-purchase certificate covers only the invoice or purchase order listed on it. Sellers should track buyers who go more than 12 months without a purchase and request a new certificate before the next exempt sale.Buyers and sellers should keep copies of resale certificates and related transaction records for at least three years. Buyers need records showing what they purchased for resale, while sellers need the certificate and sales records to support the exemption they accepted.

Buyer-versus-seller checklist

FAQs

Does Iowa issue a separate resale certificate number? Use the registration number requested on the exemption certificate. Your permit number identifies your tax registration. The certificate documents your claim that the purchase qualifies for resale.

Do I file the certificate with Iowa? No. Give the completed certificate to the seller. The seller keeps it to document the exempt sale, and you should keep a copy.

What if a certificate gets lost? Ask the buyer for a replacement covering the purchase. If you are the buyer, complete a new copy for the seller and keep one for your records.